Property Tax Rates Vary Widely by State and Geography
There is a nearly $8,000 difference between what residents of the state with the highest property taxes pay compared to those who live in the state with the lowest annual tax bill.
NAHB analysis of data from the 2019 American Community Survey shows that in 2019, New Jersey continued its perennial distinction as the state with the highest average annual tax bill per home owner. Garden State home owners paid an average of $8,687 in real estate taxes in 2019.
At the opposite end of the spectrum, Alabama ranked 50th among home owners in average real estate tax paid per year. There, the average real estate tax bill totaled just $713.
The top five states with the highest average annual property taxes are all located in the Northeast:
Rank | Average Real Estate Taxes Paid Per Year |
1. New Jersey | $8,687 |
2. Connecticut | $6,593 |
3. New York | $6,410 |
4. New Hampshire | $5,843 |
5. Massachusetts | $5,495 |
The states with the lowest average annual property taxes are primarily located in the South:
Rank | Average Real Estate Taxes Paid Per Year |
50. Alabama | $713 |
49. West Virginia | $815 |
48. Mississippi | $1,038 |
47. Arkansas | $1,046 |
46. Louisiana | $1,080 |
NAHB economist David Logan looks at the national picture and provides further analysis in this Eye on Housing blog post.
Find out where your state stands on the list.
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